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US Treasuries inflows YTD make the strongest start since 2004 - BofA Flow Show

Published 03/03/2023, 08:10 AM
Updated 03/03/2023, 08:19 AM
© Reuters.  US Treasuries inflows YTD make the strongest start since 2004 - BofA Flow Show

By Sam Boughedda

BofA analysts said in the firm's "Flow Show" note on Friday that US Treasury inflows for the year-to-date have made the strongest start to the year since 2004.

So far this year, US Treasuries inflows of $29.9 billion, according to the analysts.

They also revealed that this week $68.1B flowed to cash, $8.4B into bonds, with $0.9B from gold, and $7.4B from equities.

BofA private clients are now 60.3% in stocks, 21% in bonds, and 11.7% in cash, with ETFs showing that BofA private clients have been buying emerging market debt, Japan stocks, materials, selling bank loans, high yield, municipal bonds in the past four weeks.

In their memo, the analysts also noted that higher rates are impacting the UK property market, while China's PMI is "greatly outperforming US ISM."

In addition, there was a second week of outflows from European stocks, while investment-grade bonds saw a 10th week of inflows, and high-yield bonds' three-week outflow is the largest since September 2022.

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